X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-Coming off one of the best years for the apartment market in 2000, the trend looks like it may continue into this year if the first quarter numbers hold up, according to a new survey.

“The Phoenix metropolitan’s alluring combination of strong population growth and job creation continued to fuel demand for housing in the first quarter of 2001,” says John Hendricks, owner, CEO and president of Phoenix-based Hendricks & Partners, a national multifamily advisory firm.

During the first quarter, apartment absorption totaled 3,120 units, nearly matching the figure put up during the same period during 2000. New construction is up although permits are off from last year’s numbers, down to 2,328 versus 3,690 a year ago. Some 2,000 apartment units were under construction during the first quarter, better than the 1,656 under construction for the same period last year.

A fourth of the apartments completed and opened during the quarter are in Phoenix and another fourth in Chandler. In Phoenix, a 258-unit complex and another with 256 units opened, while in Chandler a complex with 240-units and one with 289-units delivered.

Overall vacancy is pegged at 6.3% in comparison to 6.6% a year ago. The lowest vacancy rate is in north Scottsdale, which recorded a rate of 4.6%, a full 2% lower than last year. “North Scottsdale’s success can be attributed to the 40 new office projects built in the city over this last boom period,” Hendricks says.

Rent growth is moderate across the Valley, with the overall average increasing 3.5% over the one-year period ending March 2001. South Phoenix posted the largest gains, with rent increases on average of 4.7%.

Of complexes with 100 units or more, 11 had been sold during the first quarter in comparison to an even dozen in first quarter 2000. The overall selling price per sf had come in at $68.91 or $55.847 per unit.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.